[2] The inflation rate in Pakistan has averaged 7.99 percent from 1957 until 2015, reaching an all-time high of 37.81 percent in December 1973 and a record low of -10.32 percent in February 1959. The PIDC's major investments were in paper and paper board, cement fertilizer, jute mills, shipyards, and the Sui Karachi gas pipeline. But further acceleration requires tackling pervasive power cuts, a cumbersome business environment, and low access to finance. Their balance of payments were considerably improved. The advantages of technological change were channeled into agriculture. The rest were located in India. Per capita GNP growth rate from 1985 to 1995 was only 1.2 percent per annum, substantially lower than India (3.2), Bangladesh (2.1), and Sri Lanka (2.6). In the Second Five-Year Plan, an allocation of Rs. "[28] As a result, Pakistan's rate of GDP growth rose to an average of 6.5 percent per annum in the 1980s. JF-17 Thunder became the first indigenous combat aircraft produced by the country. The private sector was encouraged to invest in large scale industries. historical development of education in pakistan since 1947 ppt Home; About; Schedules; News & Events; Contact Us "[28] At this time, the country lacked the foreign exchange reserves needed to cover its imports or service its debts, remittances and investments had decreased by millions, and Pakistan had no access to private capital markets. 1277.0 crore) was incurred for the growth of manufacturing sector. Bhutto's government also failed to meet distributional objectives. The increasing proportion of Pakistan’s youth provides the country with a potential demographic dividend and a challenge to provide adequate services and employment. Since independence, economic growth has meant an increase in average income of about 150 percent from 1950 to 1996, But Pakistan like many other developing countries, has not been able to narrow the gap between itself and rich industrial nations, which have grown faster on a per head basis. has helped in import substitution and has saved a substantial amount of foreign exchange. Lawrence B. Besides farmers, other occupational groups included barbers, carpenters, doctors (Ayurvedic practitioners), goldsmiths, weavers, etc. Domestic production of items such as refined sugar steel, fertilizer, cement, etc. [26], According to Muhammad Abrar Zahoor, the nationalization of industries can be divided into two phases. Pakistan experienced remarkable development-oriented structural transition ─ GDP share of agriculture declined from 53% in 1947 to 21.2% in 2010, GDP share of industry rose from 9.6% in 1949-50 to 25.4% in 2010, and GDP share of the services rose from 37.2% in 1950 to 53.4 % in 2010.78. Comments. Two wars with India - the Second Kashmir War in 1965 and the separation of Bangladesh from Pakistan also adversely affected economic growth. The Indian leaders continued to create difficulties for Pakistan in the hope that Pakistan would not survive for long. The period from 1960 to 1970 covers two Plan periods, the Second Five-Year Plan 1960-65 and the Third Five-Year Plan 1965-70. The suspension of foreign aid, loss of indigenous market (East Pakistan), fall in exports, devaluation to the extent of 131 percent, nationalization of industries, labour unrest, unfavorable investment climate, floods, recession in world trade, reduction in investment incentives, etc., caused a fall in the output of large scale industries. These industries included small sugar mills, cotton ginning factories, flour mills, rice husking mills, canning factories, etc. THE Indus Valley civilization, the first known permanent and predominantly urban settlement that flourished between 3500 BC to 1800 BC, featured a vibrant economic system. Ratan Lal Basu & Rajkumar Sen: Ancient Indian Economic Thought, Relevance for Today. The efficient Mughal tax administration system was left largely intact, but India fell from its top rank to become the second-largest economy in the world. 3. The government also set up an Industrial Finance Corporation and an Industrial Investment and Credit Corporation in 1948. Pakistan developed the first motorway in South Asia in 1997; today it has expanded to a 1,502 km long network. ... rapidly increase the rate of development of east Pakistan. The Plan could achieve only a partial success as it ran into difficulties as soon as it was launched. There was also reduction in U.S.A aid. The Pakistani rupee has remained relatively stable against the US dollar since 2015, though it declined about 10 percent between November 2017 and March 2018. At independence 85% of the population was illiterate , and the condition of women and backward areas was even worse. Tax concessions were also offered for investment in less-developed areas. [3], Overall, Pakistan has maintained a fairly healthy and functional economy in the face of several wars, changing demographics, and transfers of power between civilian and military regimes, growing at an impressive rate of 6 percent per annum in the first four decades of its existence. [citation needed], After Musharraf's resignation in 2008 due to mounting legal and public pressures, the PPP government once again resumed control of Pakistan. Manufacturing growth in Pakistan during this time was 8.51 percent, far outpacing any other time in Pakistani history. The manufacturing sector could achieve a growth rate of 7.8 percent against the Plan target of 10 percent. The industrial performance in terms of growth, exports, and production was disappointing from 1971 to 1977. According to Multidimensional Poverty Index (2016) 39 percent population of Pakistan lives in poverty, which means that 4 out of 10 people in Pakistan live in poverty. The countries achieved balanced growth in various sectors of the economy. Prime Minister Secretariat in the new capital city. [18], Some academics have argued that while HYV technology enabled a sharp acceleration in agricultural growth, it was accompanied by social polarization and increased interpersonal and interregional inequality. The history of the [[Islamic Republic of Pakistan2010}} which reached its zenith during Mughal Era.In 1947, Pakistan consisted of West Pakistan (today's Pakistan) and East Pakistan (today's Bangladesh).The President of All-India Muslim League and later the Pakistan Muslim League, the secretary general of the Muslim League, Liaquat Ali Khan became Prime Minister. For the first time, most of India was unified under one ruler. Despite this, Pakistan's average economic growth rate since independence has been higher than the average growth rate of the world economy during the same period. Development Of Pakistan since 1947 to the present BACKGROUND • Creation of Pakistan in 1947 was in many ways a unique event which at the same time was bound to have many difficulties primarily due to a consistently hostile attitude adopted by Indian leadership. There were various reasons for the poor performance of the manufacturing sector. Tarbela Dam, the largest earth filled dam in the world, was constructed in 1968. During this period, the country was newly born and politically immature. Last year Pakistan has successfully marked its 69 th year of independence and now it is in its 70 th year. This phase started from 1947 ended to 1958. Economic mismanagement in general, and fiscally imprudent economic policies in particular, caused a large increase in the country's public debt and led to slower growth in the 1970s. [1] Balance of payments concerns have also reemerged as a result of a significant increase in imports and weak export and remittance growth. The exchange rate also remained fairly stable throughout this period. The advanced countries of the world, America, Germany, Great Britain, Japan, and Russia, encouraged industrialization on large scale. Although the subcontinent enjoyed economic prosperity during the Mughal era, growth steadily declined during the British colonial period. Average annual real GDP growth rates[15] were 6.8% in the 1960s, 4.8% in the 1970s, and 6.5% in the 1980s. The Cambridge Economic History of India: Volume 2, c.1751-c.1970 (1983). Trade relations were strained until the issue was resolved in mid-1950. [20], In 1959, the country began the construction of its new capital city. The Soviet–Afghan War significantly affected the economy of Pakistan, with approximately 1.7 million Afghani refugees moving to Pakistan. Five decades later, the manufacturing production index is 12,000 with the base of 100 in 1947. The share of industrial sector to GNP went up to 11.8 percent from 1960 to 1965. Jinnah International Airport was greatly expanded in 1994, making it a regional aviation hub. When Pakistan became a country on August 14th, 1947, to form the largest Muslim state in the world at that time. Although Pakistan missed several structural reform criteria, it restored macroeconomic stability, improved its credit rating, and boosted growth. During the Mughal period (1526–1858) in the 16th century, the gross domestic product of India was estimated at about 25.1% of the world economy. One wing of the country (East Pakistan) was forcibly separated. In its South Asian Growth report, the World Bank stated: "In Pakistan, gradual recovery to around 4.5 per cent growth by 2016 is aided by low inflation and fiscal consolidation. Lesser. Along with heavy investment in manufacturing, Ayub's policies focused on boosting Pakistan's agricultural sector. Mughal India was now the world's largest economy, responsible for almost a quarter of global production, as well as a sophisticated customs and taxation system within the empire. [35] These gains can be attributed largely to debt reduction and economic reforms, but also to the procurement of billions of dollars' worth of U.S. aid to Pakistan in return for Pakistan's support in the US-led war on terror. a) 1950s: The era of rapid industrial growth b) 1960s: The ere of industrial stabilization c) 1970s: Nationalization and its impacts d) 1980s: Russia-Afghan war and pro-industry policies of Zia Yet, by the second quarter of the 19th century, raw materials, which chiefly consisted of raw cotton, opium, and indigo, accounted for most of India's exports. The rate of inflation fell, while the investment rate grew to 23 percent of GDP, and an estimated $14 billion of foreign private capital inflows financed many sectors of the economy. Benazir Bhutto twice led the country during this period and promoted social-capitalist policies. basic foundations on which India embarked upon its path of development since gaining independence in 1947. Kumar, Dharma and Meghnad Desai, eds. 5 of 1974, the government transferred the major projects to new Corporation. The common public in British India was subject to frequent famines, had one of the world's lowest life expectancies, suffered from pervasive malnutrition, and was largely illiterate. [52][53] On 7 November 2016, Bloomberg News also claimed that "Pakistan is on the verge of an investment-led growth cycle. [21] A Greek firm of architects, Konstantinos Apostolos Doxiadis, designed the master plan of the city based on a grid plan which was triangular in shape with its apex towards the Margalla Hills. It had an area that produced a large share of agricultural, forest, and animal products. Increases in remittances and stable agricultural performance contribute to this outcome. However, the infrastructure they created was mainly geared towards the exploitation of local resources, and left the economy stagnant, stalled industrial development, and resulted in an agricultural output that was unable to feed a rapidly accelerating population. "[27], Bhutto introduced socialist economics policies while working to prevent any further division of the country. During the 1960s, Pakistan was seen as a model of economic development around the world, and there was much praise for its rapid progress. The decline in the growth of the manufacturing sector was due to multiple reasons like the reduced production of cotton crops, sugar shortage, steel and iron problems, and global oil prices. The nationalization of industries in 1972 inflicted a heavy blow to the PIDC. The gross domestic product of Mughal India in 1600 was estimated at about 24.3 percent of the world economy, making it the second largest in the world.[8]. Approximately 11.8 million new jobs were created during Musharraf's term from 1999 to 2008, while primary school enrollment rose and the debt-to-GDP ratio dropped from 100 to 55 percent. In contrast to the relative stagnation during the period from Independence to 1959-60 when nothing except nascent large-scale manufacturing grew faster than population, the period from 1959-60 through 1969-70 is one of quite remarkable growth of the Pakistan economy. Corruption grew exponentially and access to state corridors became a primary avenue of accumulating a private fortune. interesting things about pakistan sir .... current statistical data use krn good work, very helpful and helped me pass in my assignment, Thnx. The recurring floods, successive years of drought, and political unrest slowed the pace of development in all the sectors of the economy. Out of 921 industrial units operating in the British India, Pakistan got only 34 industries, i.e. The production capacity of the already existing units like fertilizers, jute, paper, and DDT were considerably expanded. An estimate of India's pre-colonial economy puts the annual revenue of Emperor Akbar's treasury in 1600 at £17.5 million (in contrast to the entire treasury of Great Britain two hundred years later in 1800, which totaled £16 million). The British built an advanced network of railways, telegraphs, and a modern bureaucratic system that is still in place today. Pakistan is facing a financial crisis since its independence in 1947. The share of industrial sector to GDP rose from 9.7 percent in 1954-55 to 11.9 percent in 1959-60. Although ancient India had several urban centers, much of the population resided in villages, where the economy was largely isolated and self-sustaining. Since the country's independence in 1947, the economy of Pakistan has emerged as a semi-industrialized one, based heavily on textiles, agriculture, and food production, though recent years have seen a push towards technological diversification. 3. 4. Growth of industrial sector from 1947 to 1950. Since emergence of the state on the political background of the world, economically, it has experienced a bumpy ride all together. Evolution of Democracy. I would like to thank you for such great information. The purpose of this talk is to analyze how much has India really achieved in the last 55 years in fulfilling the aspirations on which it was founded. The broad outline of government policy in the 1950s and early1960s involved squeezing the peasants and workers to finance industrial development.Much of the economy, and particularly industry, was eventually dominated by a small group of people, who were largely traders who migrated to Pakistan's cities, especially Karachi, at partition. In the Third Five-Year Plan, from 1965 to 1970, development expenditure amounting to Rs. [10], After gaining the right to collect revenue in Bengal in 1765, the East India Company largely ceased importing gold[11] and silver, which it had hitherto used to pay for goods shipped back to Britain. 1 through 30 The empire spent considerable resources building roads and maintaining them throughout India. 4. Pakistan's economy was quickly revitalized under Ayub Khan, with economic growth averaging 5.82 percent during his eleven years in office from 27 October 1958 to 25 March 1969. 3000 km long China–Pakistan Economic Corridor construction began in 2015. National Education Conference (1947) One of the first steps towards education development in Pakistan was the National Education Conference in 1947. Major heavy mechanical, chemical, and electrical engineering industries were immediately nationalized, as were banks, insurance companies, educational institutions, and other private organizations. However, in 1974, the influence and authority of the left wing within the party significantly decreased: they had either been marginalized or purged.5 As a result, the second phase was less ideologically motivated, and was instead driven by the outcome of ad hoc responses to various situations.6 Between 1974 and 1976, the style of economic management Bhutto adopted reduced the role of the Planning Commission as well as its capacity to offer advice to political decision-makers. Currently, we are facing. A tremendous boost to economic activity was provided by rising worker remittances, which reached a peak of US$3 billion in 1982–83, equivalent to 10 percent of the gross national product of Pakistan. This also prevented agricultural land from being split and reaped a higher yield due to the benefits of scale. [6], During the Maurya Empire (c. 321–185 BC), there were a number of important changes and developments in the Indian economy. A review of Pakistan's political structure and events since its 1947 independence. In the period from 1947 to 1950, the private entrepreneurs invested in high-profit industries. Present Growth Pakistan's Industrial Sector. [17] The Export Bonus Vouchers Scheme (1959) and tax incentives stimulated new industrial entrepreneurs and exporters. [22] The capital was not moved directly from Karachi to Islamabad; it was first shifted temporarily to Rawalpindi in the early sixties and then to Islamabad when the essential development work was completed in 1966. There was all-round development of industries, particularly in agricultural processing, food products, and textiles. PAKISTAN ECONOMY INITIAL PHASE 1947-1958 ... (Industrial Development Bank of Pakistan). 185.11 crore was allocated to the growth of industrial sector. In this way, groups and individuals in command of state institutions used public intervention in the economy "as a means for extending their wealth and power. Between 1949-50 and 1969-70 the economy made considerable progress in industrial, commercial, and also agricultural development. [12] In addition, as under Mughal rule, land revenue collected in the Bengal Presidency helped finance the company's wars in other part of India. PTCL was privatized in 2005, and boosted revenue of over $1 billion. According to Sushil Khanna,[31] professor at the Indian Institute of Mass Communication, the completion of the long gestation period of Tarbela Dam also helped unleash unprecedented agricultural growth, while fertilizer and cement investments made in the 1970s contributed to industrial growth. [23], The partition of British India and the emergence of India and Pakistan in 1947 severely disrupted the country's economic system. Though, during all these years, our beloved country had faced so much ups and downs but still no one can undo it. Industrial development or history of industries in Pakistan can be divided into six phases: Phase 1 (1947-1957): 1. Spread over 1700 acres, Quaid-i-Azam University was constructed in 1967. [12] Fine cotton and silk had been the main exports from India to markets in Europe, Asia, and Africa in the 1750s. In the last over three decades , the contribution of industrial sector to GDP is only 18.5% which by any standard is not satisfactory . Pakistan's economy recovered significantly during the 1980s via a policy of deregulation, as well as an increased inflow of foreign aid and remittances from expatriate workers. The growth of large scale manufacturing slowed down to an average of 4.7 percent in the first half and further to 2.5 percent in the second half of the 1990s. After the State Bank of Pakistan was founded in 1948, a currency dispute between India and Pakistan broke out in 1949. The share of industrial sector was 18.2 percent of the GDP in 2003-04. The administrations of Asif Ali Zardari and Syed Yousaf Raza Gillani oversaw a dramatic rise in violence, corruption, and unsustainable economic policies that forced Pakistan to re-enter an "era of stagflation. The contribution of industrial sector was 6.9 percent of the GDP in 1950. Industrial Sector and Its Components. Economic growth during the 1950s averaged 3.1 percent per annum, and the decade was marked by both political and macroeconomic instability and a shortage of resources to meet the nation's needs. The infrastructure for the establishment of heavy industries was also to be developed. 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